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After asking China to extend the debt repayment period, Pakistan said it must repair its relationship with the United States and make its attitude towards China clear

2024-08-07

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The China-Pakistan Economic Corridor is a landmark project of the Belt and Road Initiative. The completed projects have greatly alleviated Pakistan's energy shortage. However, against the backdrop of the global economic downturn, the Pakistan-China Railway has also run into problems. According to Pakistani media reports, the Pakistani government has formally requested China to suspend the collection of 401 billion rupees (about 10.45 billion yuan) in energy fees.

Pakistan hopes to extend the repayment date of the debt by eight years and repay the interest in RMB. It also requires China to lower the interest rates of some investment projects. The Pakistani finance minister and energy minister who visited China not long ago have both spoken out on this matter. China has not yet officially agreed to this request, and the two sides are still in close communication.

However, Pakistan, which faces increasingly severe debt risks, seems to have come up with another solution. According to a report by Guancha.com on August 7, Pakistani Prime Minister Shahbaz Sharif recently publicly stated in front of reporters that Pakistan must repair its relationship with the United States, which is very necessary for Pakistan. But he also patched up his remarks, and emphasized that repairing relations cannot be at the expense of China, because both countries are important to Pakistan. Shahbaz Sharif lamented: Any goal that China helps Pakistan achieve is something that the United States cannot do.